All credit is not equal; licenses let banks blow ‘money’ across landscape - Nooganomics. Local economy & free markets
print By Franklin Sanders The ongoing financial crisis has spawned a tempest of talk about credit, bank reserves, loans, bad loans, savings, and the banking racket in general. As I mused on all that, a light bulb came on in my brain: all credit is not equal. Neither are the children of credit. Lending real money When silver & gold money – real money – are used, credit (loans) can only be extended out of savings. The lender lends, and the borrower borrows, money. Substance. Real stuff. Even under our fiat money system, we are in a similar situation. If